10-02-24 Work SessionOctober 2, 2024
A work session meeting of the Scandia City Council was held on the above date. The meeting
was conducted in the Council Chambers at the Scandia Community Center and over an
electronic platform. All participants who joined the meeting remotely could hear each other and
contribute to discussions.
Mayor Christine Maefsky called the meeting to order at 6:30 p.m. The following were present:
Council members Jerry Cusick, Mike Lubke, Steve Kronmiller, and Mayor Christine Maefsky.
Staff present: City Administrator Kyle Morell, Public Works Director Charles Fischer and City
Treasurer Colleen Firkus.
APPROVAL OF THE AGENDA
Kronmiller, seconded by Maefsky, moved to approve the agenda as amended to add an
interview with Kathy Sanville for Park & Recreation Committee vacancy. Motion carried
4-0.
INTERVIEW KATHY SANVILLE FOR PARKS & RECREATION COMMITTEE
VACANCY
Council members took turns asking Sanville prepared interview questions. Sanville outlined her
qualifications and interests emphasizing her interest in outdoor sports and activities. Sanville
asked what are the expectations were for this role on the Park & Rec Committee. The meeting
was closed for Council discussion. Cusick, seconded by Lubke, moved to appoint Kathy
Sanville to the Parks & Recreation Committee. The motion carried 4-0.
CANNABIS ORDINANCE UPDATE
Administrator Morell presented an updated draft of UDC language and a Cannabis Ordinance for
Council to review based on Council’s desire to treat cannabis and hemp businesses similarly to
the restrictions around alcohol and tobacco in terms of licenses allowed and restrictions on
business locations. The items that still require Council attention are: 1) the number of licenses
allowed within the City with one being the minimum. The consensus of the Council was not to
limit the number of licenses and allow the market to determine how many businesses can
survive. 2) Age Requirements which currently limit the sale of low-potency hemp to places that
only allow persons 21 years of age and older which is more restrictive than the sale of tobacco
and liquor. Council agreed with the staff recommendation to not keep this provision. City
Planner Hofer also recommended the Council consider setting limits on distance of outside
cultivation from schools, daycare facilities and churches as growing hemp has a distinct smell,
and other communities are considering setting limits like 500 to 1,000 feet. Further discussion
will occur at the next regular meeting October 15 when the City Planner and City Attorney will
be present. The next step is to schedule a public hearing November 6 to be held at the work
session.
CITY TREASURER JOB DESCRIPTION
Administrator Morell recommended posting the City Treasurer position as part-time at 24 hours
per week with a start date of January 1st. Since no health insurance will be offered, the position
will accrue paid time off (PTO) and receive holiday pay on a prorated basis to make the position
more attractive to prospective applicants. The City currently defines a full-time employee as
someone scheduled to work more than 32 hours a week. The new Treasurer would accrue PTO
to 75% of full-time employees. The City’s Personnel Policy will need to be amended. The Fire
Chief position would be exempt.
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October 2, 2024
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Kronmiller, seconded by Lubke, moved to post the City Treasurer position as part-time at
a minimum of 24 hours per week with PTO and holiday pay accrued on a prorated basis.
The motion carried 4 – 0.
2025 DRAFT FINAL BUDGET
Administrator Morell presented a draft final budget. Changes to the preliminary budget from last
month include an increased beginning balance to the Equipment Replacement Fund to include
ARPA funds to purchase fire engine this year. Doing so reduced the amount needed to borrow to
purchase the fire truck from $800,000 to $340,000.
The scheduled debt service payment for the 2024 Street Reconstruction and Seal Coating and
Crack Filling Projects is $359,887.50. That obligation was reduced to $119,569 in 2025 by
applying $40,319 in interest earnings and $200,00 in project savings. Total project savings are
expected to be between $450,000 and $480,000. The remaining amount has been applied to the
2026 bond payment to help reduce the 2026 levy. The City will issue a $340,000 equipment
certificate to pay for the new fire department engine before the end of 2024. ARPA funding and
cash will be used to cover the remaining balance. This adds $37,000 to our debt service levy in
2025 (down from $89,000 without the use of ARPA funds). The budget also shows the issuance
of $515,510 in equipment certificates in 2025, with payments beginning in 2026 for the new
plow truck and fire department tanker. The City continues to make payments on the 2018 road
bond, which is $343,166 in 2025. The total debt service levy is $501,732, $156,098, more than in
2024.
Capital Improvement Funds have also been adjusted. The Capital Improvement Fund shows a
reduction in the levy amount for 2025. Excess fund balance allowed for this reduction in revenue
while still planning for six project expenditures in 2025. The Park Investment Fund shows the
transfer of $125,000 in excess fund balance and the $150,000 transfer from the Capital
Improvement Fund to pay for the tennis court reconstruction. The Equipment Replacement Fund
shows the issuance of a $340,000 equipment certificate to pay for the new fire engine to be
delivered in late 2024. The Local Road Improvement Fund levy amount has been increased at the
recommendation of the CIP Committee. The total CIP levy is $730,000,which is $55,300 less
than in 2024.
Changes to the General Fund show health insurance premiums decreased by 5.1%. The Treasurer
position is budgeted for full-time with benefits. If a qualified candidate can be found part-time,
then further savings will be realized. General Funds expenses increased by 3.57%.
The proposed preliminary 2025 levy amount is $3,125,639. This represents a $128,787 increase
(4.3%) over the final 2024 amount. If this amount were approved as the City’s final levy, the
2025 tax rate would be 27.903%, 1.199% points higher than 2024, or a 4.49% increase. As these
expenses are clarified between now and the December Truth-in-Taxation hearing, they and the
final levy amount will be adjusted. A new page showing the estimated 2025 tax impact based on
sample home values was added to the presentation.
CITY COUNCIL VACANCY
Councilmember Heather Benson has been appointed to fill a vacancy in the 10th Judicial District.
Due to this appointment, she resigned from her City Council position, effective Thursday,
September 12, 2024. Her term was up at the end of 2024.
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October 2, 2024
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Maefsky, seconded by Kronmiller, moved to leave Benson’s seat vacate until January 2025
when the position will be filled for the next term following the November election. Motion
carried 4-0.
CARRIE MITCHELL - CONCERNS ABOUT THE BUILDING OFFICIAL
Administrator Morell reviewed Mitchell’s concerns about the City’s inspection procedures, who
was not in attendance to state her case. Staff believes that since the Building Official is an
employee of the city of Hugo, then her concerns should be addressed to Hugo. Mitchell disagrees
and wants Scandia to update their inspection procedures above and beyond MN Building Codes.
Mitchell hired a consulting service which concluded the contractor was at fault and she should
pursue the contractor. The Council consented for Morell to draft a letter to Mitchel stating the
City’s position. Kronmiller suggested the city attorney be consulted. The Council would like to
continue the discussion at the next meeting when the attorney is present.
ADJOURNMENT
Kronmiller, seconded by Lubke, moved to adjourn the meeting. Motion carried 3-0.
The meeting adjourned at 7:30 p.m.
Respectfully submitted,
Colleen Firkus
City Treasurer